A new US bill requiring companies to report off-chain transactions to the CFTC
A new bill in the United States requires cryptocurrency service providers to report all blockchain transactions to a government database.
On September 28, US Representative Don Beyer introduced the Off-Chain Digital Commodity Transaction Reporting Act, which would require trading platforms to report all transactions to a database registered with the Commodity Futures Trading Commission.
The new law aims to protect cryptocurrency investors from disputes, scams or fraud in off-chain transactions or transactions over the blockchain network. Unlike on-chain transactions, off-chain crypto transactions are not instantly entered into the blockchain but are processed secondarily, creating some difficulties in tracking.
With the emergence of trading platforms and the desire to increase transaction times and lower costs, thousands of transactions occur “off-chain” and are not recorded on a publicly visible blockchain, the announcement said.
“Unfortunately, internal recordkeeping among these private entities can vary greatly, leaving investors and consumers vulnerable to fraud and fraud,” Beyer wrote:
“This bill is a common-sense measure to restore some transparency and confidence to the digital asset market.”
Under the bill, crypto service providers would be required to report all off-chain transactions to a CFTC-registered trade repository within 24 hours. The announcement said the requirements are the same as the rules for “virtually all securities and swap transactions.”
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US lawmakers have recently focused on cryptocurrency regulations. In mid-September, nine US senators added their support to Senator Elizabeth Warren's Digital Assets Anti-Money Laundering Act. In the year The law, re-enacted in July 2023, aims to regulate unregulated digital wallets in its current form and extend Bank Secrecy Act responsibilities and combat illegal use of digital currency, among other legal measures.
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